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The taxpayer company bought five flats and exchanged contracts on 2 October 2009, with the purchase price being paid seven days later. Land transaction returns were submitted on 20 November, 42 days after the completion date.
The First-tier Tribunal concluded the returns had been submitted late, the taxpayer did not have reasonable excuse, and the penalties were confirmed.
The company appealed, saying it had from hen its title was registered by the Land Registry December 2009 to submit the return.
The Upper Tribunal rejected the argument. The effective date was 9 October 2009, because it was when full consideration was paid.
FA 2003, s 44(5)(a) referred to 'possession' rather than 'ownership', and the taxpayer had not been prevented from taking possession of the properties at 9 October.
By paying the contractual price, the company had secured the right to be registered as owner.
The taxpayer’s appeal was dismissed.
